Indian Auto Sector Saw Robust M&A Momentum in Q3 2025: Driven by Tata Motors’ Iveco Buyout

India’s automotive industry recorded a significant surge in deal activity in Q3 CY25, with 30 transactions valued at ₹40,347 crore (US$4.6 billion), according to Grant Thornton Bharat. The rise was primarily led by Tata Motors’ ₹33,330 crore (US$3.8 billion) acquisition of Italy’s Iveco S.P.A., one of the largest deals in the sector this year.

Large Strategic Deals Drive Value

Excluding the Tata-Iveco transaction, total deal values declined 36% from the previous quarter, underscoring how major strategic acquisitions continue to shape market momentum. Deal volumes remained broadly stable, while cross-border mergers and acquisitions dominated activity, comprising 71% of transactions and nearly 99% of total deal value. This reflects India’s expanding global footprint in commercial mobility and auto supply chains.

Sector Undergoing Strategic Transformation

Grant Thornton Bharat noted that India’s auto sector is in the midst of a strategic reset, with investors and original equipment manufacturers (OEMs) aligning their focus toward electrification, Mobility-as-a-Service (MaaS), and technology-led mobility platforms.

Also Read: Tata Motors Syndicates €3.875 Billion Bridge Loan to Fund Iveco Deal

M&A Value Jumps Despite Lower Volumes

The quarter saw seven M&A deals worth ₹35,961 crore (US$4.1 billion), a 1,234% increase in total value despite a 13% fall in volume compared with Q2. Private equity interest remained steady in future-ready mobility segments, while domestic public markets stayed subdued with no notable Initial Public Offerings (IPOs) or Qualified Institutional Placements (QIPs).

Global Ambitions and Future Outlook

The Tata Motors–Iveco acquisition underscores India’s growing ambition to expand its global presence and accelerate its transition toward cleaner, smarter, and scalable automotive solutions.

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